8 Stats Recruiters Should Know About The Global Jobs Market
Finding the right person for the job is always a priority for recruiters. This year, that task becomes even more crucial when you consider changes in the global labor market. Certain high tech skills are in short supply, yet hiring is outpacing expectations in some industries, and candidates are asserting more control over the job search process.
Globally, all employers are facing the same issues: a lack of candidate interest in some jobs, and a lack of candidate skills for other roles. At the same time, job seekers want employers who value the skills they have, and who will help them develop more skills as employees. If you think about it, these issues aren’t very different. Multiple studies have exposed this variance between the expectations of employers and candidates.
Job board Indeed recently published a report from its Hiring Lab, Labor MarketOutlook 2016: Uncovering the Causes of Global Jobs Mismatch. Using data from its sites in the 12 largest countries by GDP, Indeed revealed some striking figures on the worldwide labor market. In this post we’ll explore eight of those stats, and why they’re important for recruiters in 2016.
1. 8.1% of professionals search for jobs outside their current country
That might look like a small amount, but it represents a significant increase in recent years. Global migration hovered around 4 million people after the Great Recession. But in 2014, 4.3 million people permanently migrated to OECD countries, bringing migration back to a pre-crisis level. The U.S. was the most popular destination, followed by Germany and the U.K.
2. In 2015, 38% of global employers reported difficulty filling open jobs
And this figure has been slowly increasing, up from 30% in 2009. It is perhaps the clearest signal of how serious the mismatch between employers and potential employees has become. In some countries, weak economies result in underutilized workers and reduced training programs, which will only exacerbate the skills shortages.
3. 25.84% of available jobs in the U.S. were still open after 60 days last year
We’ve discussed the time to fill metric before, which peaked in 2015 at an average of 29 days. But it’s especially worrying to see the number of jobs that remain unfilled above the average. The U.S. has the highest rate of open positions after 60 days, followed by Germany (20%) and Canada (18.7%).
4. At the same time, tertiary educational attainment increased from 27.7% to 37.4%
This growth came from eight of the 12 countries in Indeed’s report. Overall, tertiary education rates are at their highest level in each of the 12 largest economies.
5. 61% of U.S. employers offered some undergraduate tuition reimbursement as of 2013
So are businesses driving the growth in educational attainment? Perhaps, with some caveats. The Society for Human Resource Management found that the average maximum reimbursement allowed for education expenses was just $4,980. The average annual tuition for a four year degree in 2015 was $9,410 at public colleges (in-state) and $32,405 at private colleges.
6. Still, 34% of employers said a “lack of technical competencies” makes it difficult to fill jobs
What does that refer to? Primarily “hard skills” in computing. While some companies may offer minimal funds for undergraduate tuition, this is obviously not filling the gap in the technical skills employers require.
7. Globally, 35.4% of people age 16-29 have no computer experience at work
From an American standpoint, it can be hard to picture more than a third of young people having no exposure to computers at work. Yet this is the reality for many entry-level workers in large economies, including developed nations such as Italy and Spain.
8. The number of job postings looking for Java skills is 5 times greater than the number of searches for jobs requiring that skill
Java is the most commonly used programming language, so Indeed chose it as a good barometer of demand for computing skills and jobs. Last year the U.S. attracted the most global job seekers searching for openings that require Java skills, followed by Canada and India.
So what does all this mean for recruiters? If you operate in an industry that doesn’t rely on computer skills or global talent, you could breathe a small sigh of relief. But odds are the changes in skills and available talent worldwide will impact most talent acquisition leaders. What these figures highlight is the importance of collaboration between employers and the institutions that prepare workers for the job market.
It is not enough to expect job seekers to gain new skills based on the demand an employer makes–there need to be incentives, and realistic opportunities, to gain those skills. Recruiters should review their own organization’s efforts to train workers, whether internally or externally. Any programs that benefit employee development should be promoted as part of your employer brand. And if your company doesn’t offer these benefits? Suggesting a new educational partnership or training program might just be the next big idea your organization’s CxO’s want to hear.
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